Trade overseas needs the support of export documents. Operations with foreign countries are made very complex, the sellers must explain what they are selling and the buyers must know what they are buying. For that reason, we use the following export documents:
Some of export documents are used for commercial purposes like bills, notes and weight packing. There are also documents to guarantee the quality of what is being exported. Insurance documents certify what is covered by insurance. Bills of lading are examples of transport documents.
There are different export documents that do not offer the same benefits to each user.
Letters of credit are an instrument that guarantees to the seller that he or she will be paid for the merchandise sent when it matches the criteria set in the contract by the importer.
Most are irrevocable and confirmed, which means that they cannot be modified but with the consent of the parts involved. Additionally, these documents relieve the exporter from any worry about nonpayment.
The export documents can be revocable or irrevocable, confirmed or notified.
Revocable documents give the holder the ability of modifying them without the consent of the other parts. Banks may also reserve the right to give or refuse payment.
Irrevocable: the bank can not reverse its commitment, whatever the changing circumstances of his client, unless the agreement of all parties concerned.
Notified documents give protection to the exporter but only to a certain degree. They will not cover for natural, political or transfer-related problems.
Confirmed, where the commitment of the banker of the importer is supported by a banker in the country of the exporter. The exporter must fully respect its obligations and it is guaranteed to be paid.
Exporters run a series of risks when venturing into new lands. First of all, they risk not being paid by the importer in the foreign country. Secondly, if they do not know the political and economic situation of the country they are exporting to, they risk losing their money. Another risk they take is related to the exchange rates. Export documents exist to relieve these risks.
ATA international guarantee
The ATA Carnet is an effective traditions paper which are readily made out by the holder and examined by the traditions. For entrepreneurs, the ATA Carnet provides an effective and easy rapid way to travel overseas with company materials. It helps you to save both money and time and this is a very important aspect of worldwide competition.
Trade sectors, ensuring organizations and traditions companies all recognize the excellent operation of the ATA Carnet System.
For the traditions, the use of the ATA Carnet requires less management work and increased traditions safety since the payment of transfer responsibilities and taxation is assured by the ensuring organization associated to the WCF/ATA assurance sequence in the area of the short-term entrance.
The nationwide ensuring organization is qualified for issue Carnets and to approve regional compartments on the nationwide area to deliver them on its part. In major trading countries, a multitude of regional compartments has that authority.
The ATA worldwide assurance sequence provides mutual assures guaranteeing traditions companies that responsibilities and taxation due in case of neglect will be paid.
